Woodland Hills Foreclosure Prevention Attorneys
Legal Help for Avoiding Foreclosure
Saving homes and properties from foreclosure has always been the top priority at Cal West Law. Over the last 25 years, we’ve saved over 7,000 homes on behalf of our clients. If you and your family are facing foreclosure, all is not lost — we have several strategies we can use to help you. Don’t let predatory lenders ruin your future as a homeowner. Let us help.
Ways to Prevent Foreclosure
There is no "one size fits all" way to stop foreclosure on your home. Every person facing foreclosure has unique financial difficulties that are preventing them from making mortgage payments. At Cal West Law, our foreclosure lawyers in Woodland Hills can help you find the foreclosure prevention solution that works best for you.
The following are common ways to prevent foreclosure:
Chapter 13 Bankruptcy
One of the ways you can avoid foreclosure is through Chapter 13 bankruptcy. Chapter 13 automatically stops foreclosure and allows you to reorganize and consolidate your debts. This gives you a chance to catch up on your missed mortgage payments.
Another way to avoid foreclosure is through loan modification. Also known as restructuring, the idea of loan modification is to change the terms of your mortgage to make it easier to pay. This can be accomplished by lowering the interest rate, forbearance agreements, and principal balance reductions.
Following a decline in property value, a short sale can prevent foreclosure in California. A short sale occurs when the lender agrees to accept a sale price of the home at fair market value, rather than the full outstanding balance on the mortgage. A short sale is a viable method of foreclosure prevention because the lender agrees to take a loss and write it off.
This can stop mortgage foreclosure and avoid the negative impact on your credit. It also gives you an agreement to follow, with a predictable date to vacate the premises, rather than waiting for an eviction notice to be served by sheriff's deputies. With your credit left mostly intact, you will be in a much better position to obtain another residence, either by purchase or rental.
Deed in Lieu of Foreclosure
If it appears there is no way to stop house foreclosure, the Deed in Lieu of Foreclosure option allows you to transfer the title on the property over to the lender, relieving you of all or most of your personal indebtedness associated with the loan.
This option for avoiding foreclosure offers several advantages to both parties:
- Avoids formal foreclosure proceedings
- Prevents public filing of record, thus causing less harm to your credit record
- Eliminates foreclosure costs and legal fees for the lender
This process is fairly complex, requiring projections of the future home value and the fair market value. It also requires us to convince the lender to stop foreclosure sale, because although you can't afford to make mortgage payments now, you didn't know this was going to happen when you took out the loan. Otherwise, they may allege mortgage fraud and cause even bigger problems for you.
Beware Forbearance Agreements!
We mention this "option" for avoiding foreclosure, because the lender will often present it as an alternative to stopping a foreclosure sale.
However, if you have real financial problems, a forbearance agreement is little more than a way to postpone foreclosure. It is often promoted as a chance to catch up on your payments — but with stricter terms.
The lender often requires a huge lump sum (which you may not have) before they will agree to stop mortgage foreclosure. Then, if you miss any subsequent payments, the terms of the agreement usually permit more immediate action, making it harder for you to stop foreclosure. In California, this is just a way to squeeze more money out of a homeowner, under the guise of a workout plan. Very rarely is it a viable option for the borrower.
Homeowners in Bankruptcy May Be Eligible for Relief
The federal government has reached a settlement agreement with the nation's five largest mortgage providers. Under the settlement agreement, homeowners in bankruptcy may be eligible for relief through:
- Loan modification
- Forbearance or forgiveness of principal
- Short sale
- Waiver of deficiency in loan balance
Before you make any decisions regarding your future as a homeowner, it is vital that you speak to the experienced foreclosure prevention attorneys at Cal West Law by calling (818) 446-1334.
We strive to make the bankruptcy process as smooth and simple for you as possible. Reach out to our firm today to schedule a free in-person or virtual consultation today.